Denmark’s AP Pension has sold 275 apartments in Copenhagen to Swedish real estate firm Heimstaden for DKK900m (€121m), realising a profit on the assets of more than 10% in a year.

Peter Olsson, chief executive of AP Pension’s property subsidiary AP Ejendomme, said: “We have a philosophy at AP Pension of developing attractive and well-located homes for the benefit of the local area and residents, at the same time securing a solid return for our customers.”

The two properties that formed the deal were good examples of this strategy, he said.

Olsson told Danish property news service Byens Ejendom that with the sale to Heimstaden, AP Pension had managed to generate a three-digit return in million kroner terms, within around a year.

The assets involved are two buildings which have recently been completed in the Amager and Valby areas of the Danish capital.

The properties — Schades Have in Amager and Kløverbladsparkenin Valby, have 173 and 102 flats respectively.

Magnus Nordholm, Heimstaden’s deputy chief executive, said the newly-built properties were good additions to the Swedish company’s Copenhagen portfolio.

“Stable rental properties of high quality and in good central locations are right in line with our strategy,” he said.

“It has been a simple and quick process with AP Pension and we are looking forward to continued cooperation in the future,” Nordholm said.

As well as 275 apartments, the properties also include four commercial units and 170 parking spaces.

The assets have total space of about 27,000sqm.

Heimstaden said the transaction is taking place through acquisitions of companies and is funded with cash as well as secured long-term loans from AP Pension.

The deal is set to complete on 1 February.